2. Duties. manage and operate the business for and on behalf of – provided, however, that only the time and effort it deems prudent and necessary, at the sole discretion and absolute. The parties expressly agree that – is responsible for all personnel operations and makes all day-to-day management and operational decisions. The management of all staff is ensured through – You can define the exact functions that you want to pass on to the management company, according to the specific requirements of your company. You may need someone to take charge of your accounting and some of your company`s other financial functions. For a larger company, the company may need the management company to take over larger operations, for example. B the liquidation of all the functions of one of its branches. The management contract is intended to perform the basic functions of a company smoothly, as the core function is not part of the main activity. A management contract also helps the company to better distribute its responsibilities. When you relocate your accounting function, you will never have to deal with the fact that different departments have to process their own accounts in addition to their primary functions. This means, for example, that the human resources department does not need to keep its own books. The contract should have a section that describes everything related to the compensation of the management company.
The method of calculation could be anything from a fixed commission to a performance-related commission to a percentage of profits. As a general rule, when an organization or company hires an administrative company, certain tasks must be completed. The management company is then compensated for its work. You can hire a management company to take care of your marketing. You then establish a kind of management contract under which the management company will assume all your marketing functions for a fee. The management company pays a lease agreement and a percentage of turnover to the building owner. In the meantime, they will prepare, serve and market the food. Sometimes these contracts are also used in the private sector, where management companies take control of a company`s power functions and ensure that employees are well fed.